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1. Assume that a firm currently has sales or revenues of $100,000, variable costs of $60,000, fixed
   costs of $30,000. Calculate the following:
   Contribution margin
   Contribution margin ratio
   Net profit
   Net profit ratio as percent of total sales
2. Using the above example, if revenues and variable expenses were to drop by 20%, what would the
   following be?
   Contribution margin
   Contribution margin ratio
   Net profit
   Net profit ratio as percent of total sales
3. Assume that the senior leaders want to know the net profit from a product that has the following
   sales, cost, and volume characteristics:
   Selling price per case $ 15
   Variable expenses per case $ 9
   Fixed expenses $ 40,000
   Sales volume (cases) 8,000 cases
   Calculate the following:
   Total sales
   Total variable expenses
   2
   ORGL330: GWJ
   Contribution margin per unit
   Total contribution margin
   Contribution margin ratio
   Net profit (total)
   Net profit ratio as percent of total sales
4. Grafton Metal Works of McDonough produces cast bronze valves on a 20-person assembly line that
   operates 5 days a week, 12 hours daily. The company sold 50,000 units in 2020 at $50 per unit. The
   variable costs per unit were $22.50. Fixed costs totaled $750,000. Calculate the following:
   Total sales for 2020
   Total cost for 2020
   Total variable expenses
   Contribution margin per unit
   Total contribution margin
   Contribution margin ratio
   Net profit (total)